1)Lazy in money management –
Many people has a habit of keeping money idle in saving account or at home or investing only in fixed deposits.
This habit erode your money day by day due to inflation .
Your lifestyle increases, responsibilities increases but your investment and income don’t match that speed.
2) Investment in insurance policies –
Consider Life insurance only to cover risk of life. Kindly use it as a replacement of your income for your family.
3)Habit of using credit card for consumption items –
This isn’t a good habit .
Keep habit of purchasing only in cash.
Avoid mistake off paying minimum dues of credit card . Always pray full amount.
4) Withdrawing Long-term investments for short term…
When we withdraw long-term Investments for short term needs that decision wouldn’t allow your money to give compounding effect .
Like cutting tree before it grow up.
5)Not having patience and discipline –
Our all investments need to go from all bull , bear and dull phase of that asset class.
If a small tree wants to grow big it had to go through summer , winter and monsoon.
Like that our Investments also need to go through a cycle .
6)Be greedy in momentum asset class –
We are in the fast information era. And instead of focusing on our goals our focus shifted on media .
As per the news we become greedy and fearful and act accordingly .
7)Investing short term money in long term asset class and visa versa –
Many people invest there short term required money in asset like equity .
Nature of equity is maximum volatility in short term and more predictable in long-term.
And many people invest long-term money in fixed deposit.
Nature of fixed deposit is safe in short term and not create wealth in long-term.